As part of the expansion of the Cerro Verde copper mine in southern Peru, Skanska LA maintained high standards of safety, socio-economic and environmental considerations throughout the project.

Project Introduction
Cerro Verde is an open pit copper mine located in the Arequipa province, in southern Peru, 30km southwest of Arequipa, one of the largest cities in the country. The mine underwent an expansion between 2005 and 2006 to extend its life and increase production capacity to allow the recover of molybdenum.

As part of the expansion project, mine operator Sociedad Minera Cerro Verde (SMCV) awarded Skanska LA an US$18 million contract to construct a concentrate dewatering unit, a new water intake system, sections of the new molyplant and a tailing dam with a capacity of 108,000 tons of mineral per day. Skanska worked on the project between July 2005 and September 2006, completing it on time and within budget. The expansion will allow approximately 1 billion tons of primary sulphide ore reserves to be mined and processed, and has increased the annual cooper production capacity. The mine is located in a socially and environmentally sensitive area with predominantly rural low-income populations, special arid ecosystems and endemic species. A 2004 baseline study for the expansion project found the four surrounding village districts, with a combined population of approximately 8,500, to be among the most disadvantaged in Peru, with low standards of education and unsatisfied basic needs. The same study identified 64 species of flora and 31 species of fauna in the immediate area, including 13 species endemic to the area and species of lama and lizard that are listed as endangered by the Peruvian Institute of Natural Resources.

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